Udaya Raj Adhikari's Blog

1.       Financial Institution =A financial institution established under the prevailing laws with the objectives of providing loans for agricultural cooperative, industrial or any other specific economic purpose or of collecting deposits from the general public . 2.       Money = It means all types of currency notes, postal orders, postal notes, money orders, cheques, drafts, traveller’s cheques, letters of credit, bills of exchange, promissory notes and credit cards and this expression also includes similar types of monetary 3.       Currency Note = It means the bank note in circulation in the form of cash and this expression also includes coin . 4.       Foreign Currency = It means the currency other than the Nepalese currency and this expression includes the special drawing rights on the International Monetary Fund, the Asian Currency Units, the European Currency Units and other...

1. Introduction Market risk can be defined as the risk of losses in on-balance sheet and off-balance sheet positions arising from adverse movements in market prices. The major constituents of market risks are: a. The risks pertaining to interest rate related instruments; b. Foreign exchange risk (including gold positions) throughout the bank; and c. The risks pertaining to investment in equities and commodities.                                                                             (Nepal Rastra Bank Unified Directives, 2019) Many banks have portfolios of traded instruments for short term profits. These por...